Africa was one of only two regions in the world to experience an increase in foreign direct investment (FDI) in 2012 but inflows to regional giants Nigeria and South Africa declined, a United Nations report said yesterday.
While global FDI fell by 18% last year, Africa bucked the trend with inflows increasing 5% to $50 billion, as countries like Mozambique, Tanzania and Uganda reaped the benefits of new discoveries of oil and gas, according to the 2013 World Investment Report published by the United Nations Conference on Trade and Development.
Reuters reports that South America was the only other region to see a year-on-year rise in FDI inflows, which grew 12%, though flows to the Latin America and Caribbean region as a whole declined.
Although West Africa had the biggest share of investment, flows to the region declined by 5% to $16.8 billion largely due to decreased investment in the continent's top oil producer Nigeria. Its FDI inflows fell from $8.9 billion in 2011 to $7 billion last year due to political insecurity and a weak global economy, UNCTAD said.
FDI flows to South Africa slumped 24% to $4.6 billion in 2012, largely due to a foreign mining company offloading its stake in a South African subsidiary, the report said.